Tata Steel Board Clears Multi-Billion Expansion, Bets on Low-Carbon Future

Tata Steel Board in its meeting today affirmed the long-term growth strategy for India business and considered several options and proposals, some of which is disclosed below. In line with stated objective of pursuing prudent capital allocation and profitable growth, Tata Steel will prioritize investments in the following areas

a) Investment in the volume growth

b) Investment in value added downstream portfolio

c) Investment in identified mining assets and infrastructure to serve the needs of the India business and, 

d) Invest in new to the world low carbon low capital intensity process technologies for sustainable steel making of the future.

1. The Board has accorded in-principle approval for the 4.8 MTPA capacity expansion at Neelachal Ispat Nigam Limited. This is Phase 1 of the capacity expansion in NINL and will enable Tata Steel to further expand the long products portfolio especially in the highly profitable retail space and capitalize on the growth of construction sector in India through new products and solutions.
2. As part of further enhancing the finished steel capacity in the flats products, the Board has approved the funds required to undertake the design and engineering work to set up of a 2.5 million tons Thin Slab Caster and Rolling facilities at Tata Steel Meramandali and also progress on seeking all regulatory approvals for the expansion. This will expand the finished steel capacity particularly of thinner gauge products by 2.5 MTPA.
3. Tata Steel has been steadily expanding its downstream facilities across various product lines to serve the needs of its customers. In line with this strategy and following the recent decision to consolidate the holdings in Tata Steel BlueScope Private Limited, Joint Venture in the color coated business for construction, the Board today approved the plan to set up a 0.7 MTPA Hot Rolled Pickling and Galvanizing Line (HRPGL) at its existing Cold Rolling Complex in Tarapur, Maharashtra. This will be ‘first of its kind’ facility in India and will enable Tata Steel to meet the requirements of its automotive customers for import substitution and further consolidate its leadership position in this segment.
4. As Maharashtra aims to grow to a USD 1 trillion economy in the near future and to cater to the growing demand of customers in Western and Southern India, Tata Steel has signed a MoU with Lloyd Metals & Energy Ltd to partner in the areas of iron ore mining, logistics including slurry pipeline, pellet and steel making. Both companies will jointly explore the following opportunities in the Gadchiroli district of Maharashtra,
1. Operate mining concessions and associated infrastructure, with the objective to increase iron ore production and be a prominent player in this growing region developing as a new iron ore hub of India,
2. Development of a greenfield 6 million tons steel capacity by Tata Steel in two phases and
3. Strategic cooperation in the proposed integrated steel projects already being developed by Lloyds Metals & Energy Limited (LMEL) in Gadhchiroli. All proposed initiatives are subject to further detailed evaluation, due diligence, and receipt of requisite internal and regulatory approvals.
5. Tata Steel has also signed definitive agreements to acquire 50.01% stake in Thriveni Pellets Private Limited (TPPL), subject to regulatory approvals. TPPL owns 100% stake in Brahmani River Pellet Limited (BRPL), which operates a 4 MTPA pellet plant at Jajpur, Odisha along with a 212 Kilometer slurry pipeline. LMEL holds the balance 49.99% stake in TPPL.
6. Tata Steel has been operating its pilot plant on HIsarna technology for a decade in its Ijmuiden plant. HIsarna technology is a low carbon technology that uses inferior quality iron ore, eliminates the usage of coke and also uses steel slag in its process, hence making it a sustainable technology for the future. In the last couple of years, Tata Steel along with a large global steel company has been jointly running trials in the IJmuiden Pilot Plant. The Board today reviewed the progress of the trials, reviewed the scalability opportunities of the technology and have given the approval to commence engineering work and to commence regulatory approval process to set up a demonstration plant around 1 MTPA capacity in Jamshedpur. Tata Steel owns the global intellectual property rights of the HIsrana process technology, and this is one of the key focus areas in the new technology space for the Company.

Tata Group Chairman N. Chandrasekaran marks groundbreaking of new Electric Arc Furnace at Port Talbot

Tata Steel UK today celebrates a historic milestone in its green transformation journey as Mr Natarajan Chandrasekaran, Chairman of Tata Steel and the Tata Group, joins government ministers at a groundbreaking event for the company’s state-of-the-art Electric Arc Furnace (EAF) facility in Port Talbot.

Mr Chandrasekaran will be joined by Tata Steel CEO and Managing Director T. V. Narendran and Tata Steel UK CEO Rajesh Nair, where they will officially break the ground with spades, marking the official start of construction for the UK’s largest low-carbon steelmaking facility. This is part of a £1.25 billion transformation to low CO2 steelmaking, supported by a £500 million investment from the UK Government.

The new EAF—set to be commissioned at the end of 2027—is expected to reduce Port Talbot’s carbon emissions by approximately 90%, equivalent to 5 million tonnes of CO₂ per year, while securing high-quality sustainable steel production and supporting 5,000 UK jobs directly.

Speaking ahead of the ceremony, Mr Chandrasekaran said: “This is an important day for Tata Group, Tata Steel and for the UK. Today’s groundbreaking marks not just the beginning of a new Electric Arc Furnace, but a new era for sustainable manufacturing in Britain. At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership. This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”

Business Secretary Jonathan Reynolds said:, “This is our Industrial Strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.

“This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible. Our modern Industrial Strategy will set out how we’ll back the sector even further to drive growth and create well-paid jobs across the country, as part of our Plan for Change.”

Secretary of State for Wales Jo Stevens said, “The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community. Our Steel Strategy will also deliver £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth.

“The construction of Tata’s new furnace realises the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration all mean that Port Talbot has a bright future.”

First Minister Eluned Morgan said, “This is a momentous day for heavy industry in Wales, as the electric arc furnace has secured the long-term future of steel making at Port Talbot. Seeing spades in the ground today provides a tangible sign of Tata’s intention to continue producing steel in the area, an industry which has provided quality jobs to local people for generations.

“The start of the construction phase is good news for Port Talbot and neighbouring communities, and I’m especially pleased that Tata has committed to employing local contractors and local workers where it can.”

The Port Talbot EAF will be one of the largest in the world, melting UK-sourced scrap steel to produce 3 million tonnes of steel per year. As part of Tata Steel UK’s broader decarbonisation strategy, the project also includes new ladle metallurgy facilities, infrastructure upgrades, and partnerships with leading technology providers such as Tenova, ABB, and Clecim.

Construction is being led by main contractor Sir Robert McAlpine, alongside a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.

The groundbreaking reaffirms Tata Steel’s commitment to delivering long-term sustainability, strengthening UK industrial resilience, and ensuring Wales remains at the forefront of green steelmaking.

• The groundbreaking event is to be live-streamed on Tata Steel UK’s YouTube channel from around 14:15 BST (18:45 IST) on Monday, July 14
• The joint £1.25 billion investment by Tata Steel and the UK Government in green steelmaking at Port Talbot is the biggest in a generation and will not only secure 5000 jobs across Tata Steel UK, but will also reduce the site’s CO2 emissions by 50 million tonnes over the next ten years.

Tata Steel UK and JCB Sign An MoU for the Supply of Low CO2 (‘Green’) Steel

Under the agreement, Tata Steel will supply the British construction equipment manufacturer with green steel from Port Talbot after completing its transformation plans. JCB, which maintains a close focus on carbon reduction in its manufacturing and equipment, will integrate the steel into its machinery range.

This is the first supply agreement Tata Steel UK has made since announcing the £1.25 billion joint investment with the UK Government to transition to high-quality, low-CO2 steel production in South Wales.

The project includes building a new 3-million-tonne per year state-of-the-art electric arc furnace (EAF)—one of the largest in the world—offering a lower-CO2 alternative to the traditional blast furnace method.

A JCB backhoe loader overlooking the Port Talbot steelplant where the new electric arc furnace is to be built.

A JCB backhoe loader standing next to Tata Steel’s Port Talbot Hot Rolling Mill, which will supply the iconic brand with low CO2 ‘green’ steels once the company’s electric arc furnace is commissioned in 2027/28.

The EAF will turn UK-sourced scrap into new high-quality steel, removing the need to ship millions of tonnes of iron ore and coal from across the world. Tata Steel’s plans will cut the site’s CO₂ emissions by up to 90 per cent and UK’s overall carbon emissions by about 1.5 per cent.

Anil Jhanji Chief Commercial Officer, Tata Steel UK said: “One of the key drivers in our transition plans is that our long-standing and loyal customers such as JCB need green steel to meet their own decarbonisation ambitions. They want to be supplied by a trusted partner making quality steel within the UK.

“This announcement that two of the UK’s largest manufacturers are working together to create a low-carbon supply chain is an important step in the UK’s transition to a circular economy.”

Wayne Asprey, Group Purchasing Director, JCB added: “Tata Steel is a long-term supply partner for JCB and this agreement marks an essential next step in our journey towards supply chain decarbonisation. We are fully supportive of Tata Steel UK’s investment proposals and are pleased to be one of the first customers to endorse those plans by making this agreement to secure British-made green steel as soon as it is available.”

JCB has led the way in decarbonisation in its industry, starting with its Road to Zero programme in 2010. It has achieved many industry milestones, such as developing the first-ever electric mini-digger in 2018, creating the first hydrogen-powered machine in 2021 and continuously expanding its range of fully electric-powered equipment. It is currently putting the world's first construction machines powered by hydrogen combustion engines through rigorous testing.

Tata Steel signed a contract in October 2024 with Tenova to deliver a state-of-the-art electric arc furnace and additional advanced steelmaking equipment for its Port Talbot site. The transformation of the site is expected to start in summer 2025.

Tata Steel intends to make Port Talbot one of Europe’s premier centres for green steelmaking. The £1.25 billion investment, which includes a UK Government grant of up to £500 million, is the largest capital expenditure investment in UK steel production for decades. Seventy-five per cent of the raw materials required will be sourced from the UK, up from 10% today, helping to maintain the country’s self-sufficiency in steel and making steel production more resilient to global events.

Bill Gates, Amazon backed Startup Opens World's 1st Green Steel Plant

Electra, a startup backed by Bill Gates and Amazon, has opened its first steel production plant in the United States. This pilot plant, located in Colorado, utilizes renewable energy to produce clean metallic iron from high-impurity ores. The process aims to create "green" steel, which could significantly reduce the environmental impact of steel production.

By integrating renewable energy resources, Electra achieves emissions-free iron production at a much lower temperature than traditional coal-fired furnaces. Their clean iron has a purity of over 99%, making it valuable for electric arc furnace (EAF) steelmakers. This innovative approach represents a significant step toward a cleaner and more sustainable steel industry.

Electra has developed a groundbreaking process for green steel production. Electra's method operates at a mere 60 degrees Celsius (around the temperature of coffee), which is significantly lower than traditional steelmaking processes that rely on coal-fired furnaces. Electra uses a proven industrial-scale electrochemical and hydrometallurgical process. Here are the key steps:

• Dissolving Iron Oxide: First, they dissolve iron oxide ore in an aqueous acid solution.
• Precipitating Metals: This step allows them to selectively refine the main impurities in iron ore, such as alumina and silica, as co-products.
• Direct Reduction: Electra directly reduces iron oxide into iron without the need for a blast furnace or coal burning.

The result is high-purity, gangue-free iron metal with a purity of over 99%. This clean iron can be charged directly into electric arc furnace (EAF) steelmakers, making it valuable for steel production.

 

Electra's Melissa Mansour, Faxson Cockrell, Colleen Wallace, Ben Whitman and Michael Street inspect a plate of iron from Electra's low-temperature iron electrowinning cell at its pilot plant in Boulder, Colorado.

This is a significant improvement compared to traditional steelmaking methods that rely on melting high-grade ores with coal, emitting 10% of global carbon dioxide emissions.

Electra's pilot plant represents a significant step toward a cleaner, more sustainable, and circular steel industry. Partnerships across the value chain support their goal of producing millions of tonnes of clean iron by the end of the decade.

In summary, Electra's process aims to bend the trajectory of climate change by creating green steel through innovative technology and sustainable practices.

In October 2022, Electra raised $85 million in Series B round of funding from notable group of backers including Bill Gates-founded Breakthrough Energy Ventures, Amazon, BHP Ventures, Temasek, S2G Ventures, Capricorn Investment Group, Lowercarbon Capital, Valor Equity Partners, and Baruch Future Ventures.

Several other companies are also actively working on green steel production, aiming to reduce the environmental impact of steelmaking.

Swedish startup, H2 Green Steel, is building a large-scale plant in Sweden that will produce steel using hydrogen made from renewable energy instead of coal. By the end of next year, they plant to begin making steel for customers like Ikea and Mercedes-Benz. Their goal is to produce 5 million tons of green steel annually.

Boston Metal uses electrolysis to create steel from iron ore. By leveraging this innovative process, they aim to reduce emissions associated with traditional steel production.

Arcelor Mittal and China Baowu Group have also announced commitments to net-zero steelmaking, championing solutions for a more sustainable industry.

Hyundai Motor and Abu Dhabi's Mubadala Collaborate for CleanTech and Future Mobility Technologies

• Hyundai Motor Company and Mubadala Investment Company to explore collaboration on future mobility and cutting-edge technologies, including the hydrogen value chain and production
• The two entities will also explore potential investment opportunities

South Korea's Hyundai Motor Company and UAE -based Mubadala Investment Company “Mubadala”, a global sovereign investor, have signed a memorandum of understanding (MOU) to jointly explore potential business opportunities and synergies for future mobility and technologies.

The signing ceremony, which took place in Abu Dhabi, was attended by Jaehoon Chang, President and CEO of Hyundai Motor Company, and Waleed Al Mokarrab Al Muhairi, Deputy Group Chief Executive Officer of Mubadala Investment Company. This marks the beginning of a strategic collaboration that will drive progress in future mobility and clean technologies.

The agreement will allow both parties to jointly invest and share expertise, leveraging the advantages of Mubadala's investments and Hyundai Motor's expertise in various fields, including green steel production, green aluminum production and recycling, as well as advanced air mobility (AAM), and infrastructure for electric vehicles.

Additionally, Hyundai Motor and Mubadala will seek to unlock potential investment opportunities.

“This collaboration capitalizes on the organic synergy between Hyundai Motor's eco-friendly and futuristic business strategies, including hydrogen, green steel, green aluminum as well as future mobility technologies, and Mubadala's investment portfolio,” said Jaehoon Chang, President and CEO of Hyundai Motor Company. “Hyundai Motor will continue to pursue diverse partnerships to achieve a sustainable future and contribute to the global energy transition.”

To recall, in August this year Hyundai announced that it aims to develop technology to produce clean hydrogen from food waste as the world’s third-largest automaker aims to cement its global dominance in the fuel cell electric vehicle sector.

Commenting on this agreement, Waleed Al Mokarrab Al Muhairi, Deputy Group CEO of Mubadala Investment Company, said: “This strategic partnership with Hyundai Motor Company marks a significant milestone in our journey to further diversify our portfolio across sectors that are shaping the future of the global economy such as mobility, green technology, and energy. Through our combined strengths and expertise, we will surface new investment opportunities that are in line with our strategic growth ambitions and sustainability agendas. We look forward to collaborating with Hyundai Motor Company and expanding our presence in South Korea.”

Ludhiana To House Tata Steel’s 1st Low-Carbon Green Steel Plant in India Worth Rs 2,600 Cr

[Photo ~ IJmuiden Works, Tata Steel Europe] 

The Rs 2,600 cr plant to be commissioned by March 2025

Plant to generate 500 direct employment and 2,000 indirect jobs

Tata Steel, on Friday, held the groundbreaking ceremony for its upcoming 7,50,000 tonne per annum scrap-based electric arc furnace (EAF) plant in Ludhiana. Shri Bhagwant Mann, Hon’ble Chief Minister of Punjab and T. V. Narendran, CEO & MD, Tata Steel, performed the ceremony in the presence of senior government officials and Company representatives.

This is Tata Steel’s first low-carbon green steel plant in India. This new facility in Ludhiana represents a significant step in Tata Steel’s commitment to sustainable manufacturing and attaining Net Zero by 2045. It will have cutting-edge technology, including electric arc furnaces, which is energy-efficient and produce significantly lower carbon emissions compared to traditional steelmaking processes.

Ludhiana has been specifically selected given its proximity to the Hi-Tech Valley Industrial Park as well as an auto hub from where steel scrap can be sourced to produce long steel products for the market under the Company’a flagship Tata Tiscon brand. 

T.V. Narendran, Chief Executive Officer & Managing Director, Tata Steel, said: “We are commencing a new journey of transition towards a more sustainable Electric Arc Furnace-based steel making, through which we will continue our pursuit of decarbonisation. This proposed new state-of-the-art facility in Ludhiana marks a significant stride in our commitment to sustainable manufacturing and achieving Net Zero by 2045.

I express my sincere gratitude to the Government of Punjab for their continuing support and collaboration in making this project possible. We hope to continue to work together to forge a sustainable and vibrant tomorrow. "

A capital expenditure of Rs 2,600 crore is being made in the first phase of the project. The Company plans to commission this project by March 2025. This plant would benefit the youths of Punjab, providing 500 of them with direct jobs and to another 2,000 by way of indirect employment.

In pursuit of achieving its Net Zero target and attaining leadership in sustainability, Tata Steel has made focussed interventions across the value chain and is committed towards reducing its carbon footprint in production and through the life cycle of the product. In 2021, Tata Steel also commissioned its first Steel Recycling Plant of 0.5 MnTPA capacity at Rohtak in Haryana. It is the first such state-of-the-art scrap
processing facility in the country.

In April, Tata Steel, in a world’s first instance, did a trial on its Jamshedpur plant, wherein a large quantity of hydrogen gas was continuously injected in a blast furnace, which marked a major milestone in the steel industry's journey towards green and sustainable steelmaking.

Later in June, Tata Steel and Germany’s SMS group collaborated on decarbonisation of steel making process. It was demonstrated at ‘E’ Blast Furnace in Tata Steel’s Jamshedpur plant with an objective to reduce CO2 emission by more than 50% from blast furnace’s baseline operation.